OIL PRICE HIKES MAY IMPACT ON PLASTICS

209.41.172.174 March 7 2003

A report in The Straits Times Singapore has suggested that plastics could become the victim of the war in Iraq and political unrest in Venezuela.

According to the Singapore Plastic Industry Association (Spia), the prices of petrochemicals have surged by about 25 to 30 per cent in the last five months.

The price of crude oil has been climbing steadily since mid-November last year when they were about $25 a barrel, reaching a two-year high last Thursday of $39.99 a barrel.

The price of polypropylene surged from $660 to $860 per tonne over the same period.

"We have been trying to absorb the increases so far but from this month onwards, we would probably have to raise our prices," said Toh Cheng Wan, managing director of Chuan Durn Plastic Industries.